Retailer Li & Fung to layoff staff, cut costs

HONG KONG (Reuters) - Hong Kong-based consumer goods exporter Li & Fung Ltd (0494.HK) has imposed a hiring freeze, will lay off some employees and reduce travel and other expenditure due to the global financial crisis.

Li & Fung sources everything from toys to clothes to beauty products and some of its clients include U.S. retailers Wal-Mart Stores Inc. (WMT.N) and Target (TGT.N).

In a statement issued late on Saturday, the company said it was reviewing its operating costs due to the impact that "worsening economic conditions" were having on its customers.

"Initiatives include a hiring freeze in most locations, reduction of travel and other discretionary expenses and, as a last resort, employee downstaffing," Li & Fung said.

"At this stage, it is envisaged that a limited number of employees working with business units whose customers have suffered most severely will be made redundant."

Last week, the International Monetary Fund warned conditions could get even worse as financial firms reduce their debt, investors brace of rising corporate defaults and consumers cut back on spending.

(Reporting by Tan Ee Lyn; Editing by Anshuman Daga)